US Government Shutdown Leads to Panic, Essential Services Disrupted
- The United States has plunged into a government shutdown as President Donald Trump and Congress failed to reach a funding agreement by the deadline
- With hundreds of thousands of federal workers facing furloughs and essential services disrupted, the economic and political fallout is expected to be widespread
- At the heart of the standoff lies a bitter dispute over health care funding, deepening partisan divisions and leaving no clear path to resolution
The United States has entered a fresh cycle of political and economic uncertainty following a government shutdown triggered by a failure to reach a funding agreement between President Donald Trump and Congress by Wednesday’s deadline.
Despite last-minute efforts, Trump and congressional leaders were unable to broker a deal to keep federal programmes and services operational.

Source: Getty Images
“We don’t want it to shut down,” the president said at the White House before the midnight deadline. However, the impasse persisted, marking the third shutdown under Trump’s leadership and the first since his return to office this year.
Federal workers furloughed amid budget standoff
Approximately 750,000 federal employees are expected to be furloughed, with some potentially facing termination under Trump’s Republican administration.
Many government offices may be shuttered indefinitely as the president vowed to “do things that are irreversible, that are bad” in retaliation. While his deportation agenda is set to continue unabated, essential services such as education and environmental programmes are anticipated to falter.
The shutdown has reignited fierce partisan tensions, with Democrats demanding renewed funding for health care subsidies under the Affordable Care Act.
These subsidies, now expired, have led to a spike in insurance premiums nationwide. Republicans, meanwhile, have refused to engage in negotiations, urging Trump to avoid any compromise.
Political blame game intensifies
Vice President JD Vance stated on Fox News Channel’s “Fox & Friends” that Republicans are willing to address health care concerns but only after the government reopens.
He warned of widespread consequences, including disruptions to food assistance programmes, flight delays, and unpaid military personnel. “It’s craziness, and people are going to suffer because of this,” Vance said.
Following a contentious White House meeting, Trump posted a fake video mocking Democratic leadership, which was widely criticised as unserious and racist.
The lack of a clear resolution path has left millions of Americans vulnerable, with benefit payments, work contracts, and public services thrown into disarray.
Rachel Snyderman, managing director of economic policy at the Bipartisan Policy Center, commented that shutdowns “only inflict economic cost, fear and confusion across the country.” She added, “What the government spends money on is a demonstration of our country’s priorities.”

Source: Getty Images
Economic fallout looms as shutdown takes hold
The economic impact of the shutdown is expected to ripple across the nation. The government’s monthly jobs report, due Friday, may be delayed or cancelled. While past shutdowns have had limited effects on financial markets, a Goldman Sachs analysis suggested this one could be different due to the absence of ongoing negotiations. “There are also few good analogies to this week’s potential shutdown,” the report noted.
Trump’s Office of Management and Budget, led by Russ Vought, has instructed agencies to prepare not only for furloughs but also mass firings. This directive aligns with the administration’s broader mission to reduce the size of the federal government, spearheaded by the Department of Government Efficiency.
What remains open and what closes
Despite the shutdown, Medicare and Medicaid programmes are expected to continue, albeit with potential delays due to staffing shortages. The Pentagon remains operational, and most Department of Homeland Security employees will stay on duty. However, Trump has signalled that programmes favoured by Democrats could face severe cuts, stating his intent to target “programs that they like.”
Smithsonian museums are projected to remain open until Monday, while former national park superintendents have urged the administration to close parks to visitors, citing safety and resource concerns.
Health care costs at centre of budget deadlock
Ahead of the fiscal year’s start, House Republicans passed a temporary funding bill to extend government operations into mid-November. However, the bill failed in the Senate, which requires a 60-vote threshold for passage. A Democratic alternative also failed, leaving negotiations at a standstill.
Senate Majority Leader John Thune indicated Republicans are open to discussing health care funding but not within the context of keeping the government open. More votes are anticipated, though no breakthrough appears imminent.
Senate Democratic leader Chuck Schumer faces mounting pressure from progressive voters to hold firm. “Americans are hurting with higher costs,” Schumer said after Tuesday’s failed vote.
House Speaker Mike Johnson, who sent lawmakers home nearly two weeks ago, blamed Democrats for the shutdown. “They want to fight Trump,” Johnson said on CNBC. “A lot of good people are going to be hurt because of this.”
During his meeting with congressional leaders, Trump reportedly expressed surprise at the extent of rising health care costs. Democrats, however, departed without a clear path to negotiations.
The current shutdown follows a history of federal funding lapses, including the record 35-day closure during Trump’s first term over border wall funding and the 16-day shutdown in 2013 under President Obama, driven by Republican opposition to the Affordable Care Act.
US embassy in Nigeria suspends social media activities
Legit.ng earlier reported that the United States Embassy in Nigeria has announced a temporary halt to routine updates on its official X (formerly Twitter) account, citing the ongoing government funding deadlock in Washington.
In a statement issued on Wednesday, 1 October, the Embassy confirmed that the suspension was due to a “lapse in appropriations,” a diplomatic term referring to the partial shutdown of the U.S. government. The shutdown followed Congress’s failure to pass a new budget or a stopgap funding bill.
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Source: Legit.ng